Belk, Inc., the nations largest family owned and operated fashion department store company, reported net sales for the first quarter increased 5.1 percent to $956
million compared to the prior-year period. The increase was primarily
the result of increased promotions and investments in ongoing strategic
merchandising, marketing, branding, e-commerce and service excellence
initiatives. Comparable store sales grew for the 13th consecutive
quarter, with a 5.2 percent increase.
Merchandise categories with the highest growth rate for the first
quarter included ladies accessories, cosmetics, fine jewelry, mens and
kids. The companys eCommerce sales grew 67 percent increase over the
same prior-year period. Online sales positively affected comparable
store sales by 1.6 percent for the period.
Tim Belk, chairman and chief executive officer of Belk, Inc., said, Our sales growth for the quarter remained strong as we continue to benefit from the investments we are making in the business. The bottom line was impacted by lower margins resulting from increased promotions as well the expense associated with the investments. While those investments will increase our expense in the short term, we expect them to generate strong future returns.
Net Income
Net income for the first quarter decreased to $28.2 million, compared to $40.3 million for the same 13-week prior year period. The decrease was primarily driven by higher expense associated with the companys investments in strategic initiatives, and a decrease in margin rate. Net income excluding non-comparable items was $28.4 million compared to $39.7 million for the same prior-year period. A reconciliation of net income to net income excluding non-comparable items is provided at the end of this release.
Belk Celebrates 125th Anniversary
Belk is celebrating its 125th anniversary this year with numerous special promotions and events designed to express appreciation to customers, associates, vendors and other stakeholders for their contributions to the companys success. Activities will include exclusive product offerings, celebrity appearances and community service projects across the companys 16-state market area. For more information, visit belk.com/125 or belk.com/mediaroom.
New Stores, Store and Departmental Expansions and Remodels
Belk completed shoe and jewelry expansion and remodeling projects in 24 stores across 11 Southern states during the quarter. Other store improvement projects planned for the current fiscal year include the opening of a new store in New Braunfels, Texas, the opening of new stores in Morganton and Salisbury, N.C.to replace existing stores, and the completion of eight store expansions, nine store remodels, and expansions and remodels of watches and sunglasses departments in 25 stores.
The company previously announced plans to open new flagship stores in 2014 at the Galleria in Dallas, Texas, and Bridge Street Town Centre in Huntsville, Ala. It also plans to expand existing stores in Flowood, Miss., Greensboro, N.C. (Friendly Center), and Mt. Pleasant, S.C. and convert them to flagship stores over the next two years.
Private Brand Launches
Belk launched two new private brands this spring -MADE Cam Newton, a menswear line being offered in 133 stores and at belk.com, and CYNTHIA Cynthia Rowley, an exclusive line of apparel, handbags, jewelry, scarves, accessories and small leather goods now available in 149 stores and at belk.com.
Belk, Inc. Stock Self Tender Offer Results Announced
On March 27 2013, Belks Board of Directors approved a self-tender offer to purchase shares of the companys common stock at a price of $50.00 per share. The tender offer was initiated on April 25, 2013, and on May 23, 2013, Belk accepted for purchase 2,038,229 shares of common stock for approximately $102 million.
Charlotte, N.C.-based Belk, Inc. (www.belk.com) is the nations largest family owned and operated department store company with 301 Belk stores located in 16 Southern states.
